Cyprus Parliament approves tax breaks for foreigners

The Parliament of the Republic of Cyprus has approved a bill on granting tax benefits to foreign citizens. The document was developed by the Ministry of Finance of Cyprus. The main point is as follows: if a foreigner was not a tax resident in Cyprus before starting work, then when paying income tax, he is entitled to receive a benefit of 20 %, but not more than 8,550 Euros per year.

According to the draft law, the right to the benefit is valid for five years, starting from the tax year following the year of the beginning of the employment of a foreign person in Cyprus.

The Ministry of Finance explained that this bill is aimed at increasing the level of attractiveness of Cyprus as a place of work for highly paid professionals, as well as doing business and investing. For the first time, a 20% tax discount for foreigners was introduced in 2008. In 2015, the benefit was extended until December 31, 2020. Now it will be valid until the end of 2025.

Link to source: https://www.pio.gov.cy/